Florida Senate Introduces Amendment to Nullify Disney’s Last-Minute Deal

Florida Senate Introduces Amendment to Nullify Disney’s Last-Minute Deal
Guests are seen at Walt Disney World in Lake Buena Vista, Florida, in a file photo. Gov. Ron DeSantis (R) on Feb. 24, 2022. Joe Burbank/Orlando Sentinel via AP; Joe Raedle/Getty Images
Katabella Roberts
Updated:
0:00

Florida Republican state Sen. Blaise Ingoglia introduced an amendment on April 18 aimed at taking power back from entertainment giant Disney World and its self-governing Reedy Creek Improvement District (RCID).

The amendment by Ingoglia is set to appear before the Senate Rules Committee on April 19 and could retroactively nullify a development agreement between Disney World and the RCID in February to transfer most of the RCID’s power and development rights to Disney for a period of 30 years.

This deal occurred just as the Florida Legislature created the Central Florida Tourism Oversight District to replace the RCID. The new tourism board has five members appointed by the governor.

Ingoglia’s amendment allows for an “independent special district” to be “precluded from complying with the terms of any development agreement ... executed within 3 months” of the law changing how board members are elected.

It also calls for a special district’s newly appointed board to review “any development agreements and other agreements for which the development agreement serves in whole or part” within four months of taking office.

After such a review, the newly appointed board will vote on “whether to seek readoption of such agreement,” the amendment states.

DeSantis Strips Disney of Self-Governing Status

In February, Ron DeSantis signed into law a bill stripping Disney of its self-governing status in Florida, including its tax exemptions and the right to avoid state regulatory reviews and approvals, after the company publicly voice opposition to HB 1557, officially known as the Parental Rights in Education Act, which reinforces parents’ rights to make decisions regarding the upbringing of their children.

However, shortly before the planned takeover by DeSantis appointees, Disney found a way to strip the new board of many of its powers by entering into development and restrictive covenant agreements with Walt Disney Parks and Resorts U.S. Inc.

Under that agreement, the district cannot use the “Disney” name or any symbols associated with the theme park resort without the company’s approval. It also cannot use the likeness of Mickey Mouse, other Disney characters, or other intellectual property in any manner and can be sued for damages by the company if it does.

Disney ‘Will Not Win This Fight’

In a brief statement at the time, Disney said that “all agreements signed between Disney and the District were appropriate, and were discussed and approved in open, noticed public forums.”

DeSantis launched an investigation into Disney’s last-minute deal with its old governing district board earlier this month based on the possibility that the board engaged in “inadequate notice, lack of consideration, an improper delegation of authority, and ethical violations, such as conflicts of interest and self-dealing,” DeSantis said in a letter to Florida chief inspector general Melinda Miguel.

Speaking at a news conference alongside DeSantis on April 17 in Lake Buena Vista, Ingoglia said Disney was a corporation “basically making their own rules.”

“They were their own government, and I would argue that that is an egregious form of corporate welfare,” he said. “It’s unconscionable that one corporation would hold that much power. So what did we do? We took away that power, returned it to the people, and put everyone on a level playing field, because Disney Corporation, the people that reside in this district had, quite simply, an unfair advantage over their competitors. That is unfair. It’s unfair to the other corporations, it’s unfair to the legislators, it’s unfair to the taxpayers.”

Ingoglia then declared that Disney “will not win this fight.”

However, Democrat state Rep. Anna Eskamani pushed back on the newly-introduced amendment on Twitter, writing “This immediately seems like it’s going to run into Constitutional problems with impairing contracts.”

The Epoch Times has contacted a Disney spokesperson for comment.

The Associated Press contributed to this report.
Katabella Roberts
Katabella Roberts
Author
Katabella Roberts is a news writer for The Epoch Times, focusing primarily on the United States, world, and business news.
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